Q1 2025 CoStar Group Inc Earnings Call Transcript
Key Points
- CoStar Group Inc (CSGP) reported Q1 2025 revenue of $732 million, marking a 12% increase year over year and exceeding consensus expectations.
- The company achieved a 43% profit margin in its commercial real estate and information marketplace businesses, showcasing strong operational efficiency.
- CoStar's international businesses achieved three consecutive quarters of all-time net new bookings, with a 56% year over year growth in Q1 2025.
- Apartments.com reported a strong quarter with revenue of $282 million, an 11% increase over Q1 2024, and added 4,300 new communities, the most in a single quarter in almost 10 years.
- Homes.com has rapidly increased its unaided brand awareness 9 times to 36% in just 14 months, becoming the second most visited US residential portal.
- The commercial real estate environment remains challenging, with high vacancy rates and low real asking rents impacting market conditions.
- CoStar Group Inc (CSGP) posted a $15 million net loss for the first quarter, primarily due to onetime costs from the Matterport acquisition.
- The company anticipates slight headwinds from government contract cancellations expected throughout 2025.
- Matterport contributed an adjusted EBITDA loss of $2.7 million for the first quarter stub period.
- Homes.com experienced early cancellations and negative Net Promoter Scores initially, although these metrics have improved over time.
Good day, and thank you for standing by. Welcome to the Q1 2025 CoStar Group earnings conference call. At this time, all participants are in a listen-only mode. Please be advised today's conference is being recorded. (Operator Instructions)
I would now like to hand the conference over to your speaker today, Rich Simonelli, Head of Investor Relations.
Thank you so much, operator, and hello, and thank you all for joining us to discuss the first quarter 2025 results of the CoStar Group. Before I turn the call over to Andy Florance, CoStar's CEO and Founder; and Chris Lown, our CFO, I would like to review our Safe Harbor statement. Certain portions of the discussion today may contain forward-looking statements, including the company's outlook and expectations for the second quarter and full year of 2025 based on current beliefs and assumptions. Forward-looking statements involve many risks, uncertainties, assumptions, estimates and other factors that can cause actual results to differ materially
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